Syracuse, NY -- Roughly one-third of Onondaga County’s employees will be offered a financial incentive to retire this year, and as many as 375 are expected to take the deal. Even though many will be replaced with younger, cheaper workers, county officials expect to reduce the permanent payroll by about 150 jobs, saving up to $9.5 million per year. The...
Syracuse, NY -- Roughly one-third of Onondaga County’s employees will be offered a financial incentive to retire this year, and as many as 375 are expected to take the deal. Even though many will be replaced with younger, cheaper workers, county officials expect to reduce the permanent payroll by about 150 jobs, saving up to $9.5 million per year.
The county Legislature voted Tuesday to approve participation in a state retirement incentive program, as requested by County Executive Joanie Mahoney.
Some 300 to 375 retirements are anticipated by the end of the year, which will cut the county payroll by $15 million to $19 million. Even after refilling roughly half the positions, county officials expect a permanent savings of $7.5 million to $9.5 million a year.
The county must reimburse the state roughly $10 million to $12.5 million to cover the enhanced retirement benefits. That would be paid in a lump sum from the county’s reserves in December 2011.
The Common Council of Syracuse is expected to begin studying a similar program for city employees today at the council’s study session. City hall officials estimate roughly 80 workers would retire early if the city decides to participate.
Onondaga County is the first local government in the greater Syracuse area to participate in the incentive, which was authorized earlier this year by the state Legislature. Statewide, more than 40 municipalities, school districts and public authorities have joined the program.
The state authorized two incentives, both of which will be offered to Onondaga County workers. “Plan A” adds up to three years to an employee’s service record for calculating retirement benefits. “Plan B” allows employees who are at least 55 years old with 25 years of service to retire early without benefit reductions.
Some 1,375 county workers meet the state’s criteria for Plan A — one-third of the 4,060-person work force — but Mahoney may reduce the number targeted for the program if certain departments would be crippled by too many retirements, or if the cost of training replacement workers were too high.
Barring such complications, Mahoney will offer Plan A to as many employees as possible, hoping to avoid the need for layoffs to balance next year’s budget, said Martin Skahen, speaking for Mahoney. She will develop a list of employees targeted for Plan A by July 26, and employees will have until Sept. 10 to opt in.
Some 98 employees qualify for Plan B, each of whom also qualifies for Plan A. The open period to elect Plan B, set by the state, is Oct. 1 to Dec. 29.
Mayor Stephanie Miner is proposing that Syracuse join the state’s program, said Ken Mokrzycki, director of administration. About 400 of the city’s roughly 2,000 workers could be eligible. If 20 percent took the offer, that would yield about 80 retirements, Mokrzycki said.
Reduction rejected
County legislators Tuesday rejected a proposal to slash their ranks from 19 legislators to nine, but they plan to continue discussing the subject of shrinking the Legislature.
By a party line vote of 11-6, with two members absent, Republican legislators defeated the local law proposed by Legislator Thomas Buckel, D-Syracuse. If the measure had passed, it would have gone to a public referendum.
Several Republicans said they were open to the possibility of a less drastic reduction in the number of districts. Two alternative proposals offered by Buckel, which would reduce the Legislature to either 13 or 11 positions, were pulled before they could be voted on and will be discussed at the Legislature’s Ways and Means Committee later this month.
Contact Tim Knauss at tknauss@syracuse.com or 470-3023.